Record General journal transactions with correct sales tax direction

Hello there D.M.-azing D365 Community!

Have you encountered recording Ledger accounts with sales tax on General journal but upon checking on the assigned sales tax direction you noticed that an incorrect sales tax direction was assigned in your journal line?

In this blog, let me share to you the solutions applicable whenever you encountered this issue in the future.

Sample scenario (amount and main accounts used in the screenshots may be inconsistent):

An accountant found that a transaction was not properly recorded and to adjust/correct the transaction he has to use general journal and the accounting entry is similar as per below.

The correcting entries involved recording of sales tax and both sales tax direction should be ‘Sales tax receivable’ but upon checking the posted sales tax form the accountant saw that sales tax direction for Account 110180 in not correct.

Recommended solution:

1. Go to General ledger > Chart of accounts > Accounts > Main accounts > Select or the applicable main account > Legal entity overrides > Add > Select applicable legal entity > Sales tax > Sales tax direction > Select purchase

2. On Tax > Indirect taxes > Sales tax > Sales tax codes > Select applicable sales tax code > On Calculation fast tab > Marginal base > Select ‘Net amount per line’

Once these above recommended solutions were performed, the accountant can now proceed in recording the adjusting/correcting entries.

Result (amount and main accounts used in the screenshot may be inconsistent):

That’s it for now. I hope that you find this article as a helpful tool for you to better appreciate and understand, everything and anything, about Microsoft Dynamics 365 for Finance and Operations.

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